Ethereum hit a new all-time high today at $1,950; we are still looking forward to hitting $2,000. The question now is, what are the fundamentals responsible for this continuous Ethereum rally? With the gas fees being very high for Ethereum right now, are people beginning to find convenient alternatives?
It looks like it is an all-time high season, and Ethereum is also beginning to gain a lot of attention.
Coinbase is set to introduce staking for Ethereum 2.0, although most other exchanges offered Ethereum staking a couple of months ago.
Coinbase offering staking to ETH 2.0 is big because Coinbase is still one of the world's biggest exchanges in fiat on-ramps. Their ETH 2.0 product for staking will probably be very popular with people on that exchange. This will contribute to the Ethereum supply crisis in the short to mid-term as we are going to see hundreds of thousands or more Ethereum locked up in the ETH 2.p staking contract.
Ethereum locked in the ETH 2.0 staking contract is not going to be able to be transferred until ETH 2.0 is fully operational.
There is currently a rise in demand for Ethereum in the crypto space with a supply that cannot match up. Whale accounts to a new high a few days ago at 1,278 whales holding ten thousand Ethereum or more.
From the graph, you can see how fast the number of Ethereum whales has been growing; the higher the price Ethereum goes, the more it is being bought up by whales. People want to get a position in Ethereum before it goes a lot higher.
At this rate, it seems like Ethereum is going to hit five digits in 2021. Volume over at the CME has also been soaring for Ethereum and doubling in the last week. There are a lot of institutional players that want to be part of this Ethereum party; they are looking for every action they can get their hands on in terms of getting access to Ethereum.
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